Questions business buyers and sellers ask

Buying or selling a business is a big step. Here are straight answers, and Ali Bolourchi, Broker with REMAX® Your Community Realty, Brokerage, walks you through each one.

How is a business for sale valued in the GTA?

A business is priced on its financial results and on what comes with it: the lease, the equipment and fixtures, the inventory and any goodwill. Goodwill means you are paying for an established customer base and reputation, not just the physical assets, and inventory is usually priced separately at closing. To price it on a basis buyers can defend, we combine recent sales, income analysis and current market conditions. Start with a free Property Evaluation.

What does a buyer need to buy a business?

A buyer needs a genuine purpose, financing in place and a willingness to sign a confidentiality agreement before seeing the financials. A commercial mortgage broker or your bank's commercial lender can pre-qualify you, so your offer carries weight. Before you offer, we help you review the lease, the financials and the terms.

How long does it take to sell a business?

After an accepted offer, the buyer's due diligence, financing and lease review normally take two to four weeks, and closing commonly falls 30 to 90 days after acceptance. Businesses with more complex financials can take longer. Once you are under contract, Ali gives you a realistic timeline for your deal.

How do confidential listings work?

Financial detail on an operating business is shared only after the buyer has signed a confidentiality agreement and been qualified. That protects your numbers, your staff and your customers while the business is on the market. Showings are qualified too, so staff are not disrupted by casual visits.

What is included when I buy an existing business?

It depends on the deal, but a business sale typically involves the lease assignment or a new lease, the existing equipment and fixtures, and the inventory, which is usually priced separately at closing. Some sales also include goodwill. Ali reviews the full asset list with you line by line before you commit.

What documents does a seller need to prepare?

Two to three years of financial statements and tax filings, the lease and whether it can be assigned, any franchise agreements, and inventory and equipment lists. A complete file shortens the buyer's due diligence and reduces the chance of a re-negotiation late in the process. Ali gives you a checklist specific to your business before you list.

Can a first-time buyer buy a business?

Yes. It is a big part of what Ali does. He spends more time up front explaining how financing, due diligence and closing work, so you are not learning those differences under deadline pressure in the middle of a deal.

Not sure where to start? Read the buying guide or book a deal review. We will tell you honestly what your business or your search needs.